If you’re sitting on a substantial lump sum in cash – or worse, underperforming investments, there’s a lot you can do to improve your prospects. Here’s Moneycube’s view on how investors in Ireland can go about investing a sum worth in the region of €250,000.
First of all, it pays to get clear on your aims in investing the money. For example, do you require an income from your money – or are you investing purely for growth? How long can you tuck it away for?
And are you focused on wealth preservation, or could you stomach substantial short-term losses if that’s the price of better long-term growth?
At Moneycube, we design portfolios of investments for our customers based on three requirements.
1. Investment growth
Growing your wealth is the point of investing – but something some investments lose sight of.
At the core of your investment portfolio, you need investments that are geared for strong growth. That mostly means funds containing company shares, in companies which have attractive future prospects. Here’s an example of one such fund.
2. Diversification
While you’ll want to pursue strong growth opportunities, it’s dangerous to bet the firm on any single prospect.
A sound investment portfolio will be diversified among investment types (eg company shares, property, cash and government bonds), investment managers, geography, and different industries.
It should also take account of your wider wealth – from the house you live in, to your cash savings, and any other investments and pensions you hold already.
That’s why at Moneycube we firmly believe that investment funds should form the cornerstone of your investment portfolio. When you using investment funds to put your money to work, you instantly get access to many more underlying investments. One of the funds in which our customers have invested their money holds shares in more than 1,600 companies around the globe.
3. Wealth preservation
If you are investing a quarter of a million or more, you’ve got something worth keeping. Over time, inflation, fees, taxes, and underperformance can eat into the value of your wealth. There’s a need to preserve your existing wealth, as well as to grow it.
That’s why a solid €250,000+ portfolio also needs to invest in assets which can preserve your wealth. That might mean holding gold, for example, or reliable dividend-producing assets. Some of the funds Moneycube customers invest in have increased their dividend every year for more than half a century!
It also means optimising your investments as an Irish taxpayer. One of our specialisms is constructing fund portfolios which receive the benefits of Irish capital gains tax treatment rather than exit tax.
If you’re investing a six-figure sum, it’s well worth some tax planning effort to drive down your tax cost and preserve wealth by keeping the tax due on your investments to a minimum.
We’d love to help you build an investment portfolio that fits your requirements for growth, diversification, and wealth preservation. Get in touch today, or read more on how we select investments with you.
